Facebook, WhatsApp and Instagram-parent Meta Platforms (META:NASDAQ) continues to see its share price move higher, luring investors back to its growth story at pace. The shares were among the strongest S&P 500 performers during the past week, rallying 15% but this is only part of a near-175% tear that goes back to November 2022.No longer betting the house on the metaverse, Meta is now embracing artificial intelligence for new revenue streams and, perhaps most importantly in the short-term, swinging the axe at its hefty costs which is bolstering financial performance and starting to rebuild investor confidence.

Signs of recovery in Meta’s advertising business are helping to dispel concerns about the continued relevance of its core social media platforms. On 28 April, the company announced first quarter earnings per share of $2.20 on revenue of $28.65 billion, compared to the $2.02 and $27.61 billion expected by analysts.

Advertising revenue rose to $28.1 billion year-on-year from $27 billion, good going given the advertising slowdown. Advertising impressions across the company’s apps jumped 26%, but average price per advert fell 17% year-on-year, pressured by increasing competition.

Meta sees brighter times ahead, guiding for revenue in a range of $29.5 billion to $32 billion in the second quarter, above previous
Wall Street estimates of $29.47 billion.

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